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Price level ratio of PPP conversion factor (GDP) to market exchange rate tells “how many dollars are needed to buy a dollar's worth of goods in the country as compared to the United States.”
(World Bank, http://data.worldbank.org/indicator/PA.NUS.PPPC.RF (link is external), 20-01-2015)

Methodological transparency:

Link to Methodology:

Data quality assesment:

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Contribution to the green economy:

This indicator compares how 'expensive' or 'cheap' a country is based on its currency exchange rate compared to the U.S. dollar. A lower ratio implies that people can afford to achieve prosperity with a lower income in the country, which is positive. On the other hand, a lower ratio implies a lower purchasing power for goods from abroad, which is negative. Therefore the indicator does not have a uni-directional contribution to the green economy.

Potential misinterpretation:

This price level ratio does not indicate how competitive the economy of a country is.